GBPUSD Daily RE: [OpenFX] EURJPY: A Buy? [1 Attachment]

[Attachment(s) from clay@claymarafiote.com included below]

Hi Wilf,

On the attached chart, you'll find three lines tracing out retracements using three different swingpoints and all aligning near 1.6420. The purple lines, however, define the current S/R levels, a channel, the pound has been moving between. Today's daily candle, per my chart, is an inverted hammer/shooting start/graveyard doji--all suggest indecision at the current resistance level. So, what might one do? Actually, it depends on one's timeframe; however, on a daily basis, I'd say:

1) Wait if one isn't in a position.

2) If long, raise the stop and consider a target near 1.6400.

3) If short, keep a stop above 1.6300

Short term, there may be an opportunity for a short if the market rejects the current highs prior to potentially attempting another break higher.

I hope this is useful.

Good trading,

Clay

-------- Original Message --------
Subject: RE: [OpenFX] EURJPY: A Buy?
From: Wilf Frank <kowa53@hotmail.com>
Date: Tue, March 01, 2011 12:12 pm
To: <openfx@yahoogroups.com>

Thanks for the heads up Clay. I don't have a question re: this pair but I do on the Pound/Dollar.
In your analysis with the last two COT posts you mentioned another push higher as likely. Are you thinking as high as 1.6520 which is the 127 fib.ext. from the 50% retracement? Daily chart. Thanks.
Best regards,
Wilf

To: openfx@yahoogroups.com
From: clay@claymarafiote.com
Date: Tue, 1 Mar 2011 09:49:28 -0700
Subject: [OpenFX] EURJPY: A Buy? [1 Attachment]

[Attachment(s) from clay@claymarafiote.com included below]
Hi Traders,

Is the Carry Trade back? For those who have been trading for more than five years, you might remember how the EURJPY and GBPJPY performed in this trade. In a word, it was "good". The attached chart shows how the EURJPY completed a long move down (Elliott 5 waves) and has broken a key trendline. As a longer term play, one might to consider buying this pair as it retraces part of the downside move.

Just a heads up. If you have questions, feel free to ask!

Cheers,

Clay